The bankrupts, a husband and wife, sought absolute discharges from bankruptcy.
The Trustee opposed the discharges on the basis of unpaid surplus income calculated using the Superintendent's Standards (Directive 11R2-2011).
The court reviewed the application of the standards, noting that trustees have discretion under s. 68 of the BIA and should not blindly apply the mathematical formula based on the Low Income Cut-Off (LICO).
The court found the bankrupts were honest and unfortunate debtors who had made significant efforts to pay.
The court fixed their surplus income obligations at amounts lower than the Trustee's calculations, resulting in the wife having fully paid her obligation and the husband having overpaid.
Both bankrupts were granted absolute discharges, and the Trustee was ordered to refund the husband's overpayment.
